Hello Everyone ,
Greetings for the day,
One of our employee expired before few days . He was working in our company since last 6 months as a permanent employee . His salary was 5000 pm . So plz let me know what are the compensation the company is liable to pay him. He died at his home. Plz let me know what should we do . what are the compnesation he is eligible for .
Thanks and regards
Jyoti Kushwah
From India, Ahmadabad
Greetings for the day,
One of our employee expired before few days . He was working in our company since last 6 months as a permanent employee . His salary was 5000 pm . So plz let me know what are the compensation the company is liable to pay him. He died at his home. Plz let me know what should we do . what are the compnesation he is eligible for .
Thanks and regards
Jyoti Kushwah
From India, Ahmadabad
Dear Jyoti
The family of the deceased employee is eligible for his PF, EPS Pension and EDLI Insurance benefit from the PF Contribution he made. Then from ESI also the family will get the cremation expenditure and some Insurance benefits (Please check with ESI). Then prepare the F&F settlement voucher, pay them with the earned salary pending against him.
From India, Kumbakonam
1168The family of the deceased employee is eligible for his PF, EPS Pension and EDLI Insurance benefit from the PF Contribution he made. Then from ESI also the family will get the cremation expenditure and some Insurance benefits (Please check with ESI). Then prepare the F&F settlement voucher, pay them with the earned salary pending against him.
From India, Kumbakonam
Dear Jyoti,
First of all you have to confirm what are the benefits are providing by your Organization to an employee. Is there any group insurance policies that are being provided by your company..? PF, Pensionwill be provided as per the Acts. Out of this he will get EDLI (Employee Deposit Linked Insurance) @1,30,000/- (if he completes 6 months or else he will get at prorata basis). If he expired in office, or on duty (sent by an Employer's work) then he will get pension from ESI.
From India, Hyderabad
First of all you have to confirm what are the benefits are providing by your Organization to an employee. Is there any group insurance policies that are being provided by your company..? PF, Pensionwill be provided as per the Acts. Out of this he will get EDLI (Employee Deposit Linked Insurance) @1,30,000/- (if he completes 6 months or else he will get at prorata basis). If he expired in office, or on duty (sent by an Employer's work) then he will get pension from ESI.
From India, Hyderabad
Dear Jyoti
The deceased employee's family would be entitled for gratuity calculated at the current pay (Basic+DA) from the day he joined up to the date of his attaining 58 years. Please check the Payment of Gratuity Act, 1972 and act accordingly.. The Act states that "GRATUITY SHALL BE PAYABLE TO AN EMPLOYEE ON TERMINATION OF HIS EMPLOYMENT AFTER HE HAS RENDERED CONTINUOUS SERVICE FOR NOT LESS THAN FIVE YEARS - (A) ON HIS SUPERANNUATION, OR (B) ON HIS RETIREMENT, RESIGNATION, OR (C) ON HIS DEATH OR DISABLEMENT DUE TO ACCIDENT OR DISEASE.
AN EMPLOYER WILL BE LIABLE TO PAY GRATUITY TO THE LEGAL HEIRS/NOMINEES OF THE DECEASED EMPLOYEE EVEN IF THE EMPLOYEE HAD NOT COMPLETED FIVE YEARS SERVICE.'
From India, Hyderabad
The deceased employee's family would be entitled for gratuity calculated at the current pay (Basic+DA) from the day he joined up to the date of his attaining 58 years. Please check the Payment of Gratuity Act, 1972 and act accordingly.. The Act states that "GRATUITY SHALL BE PAYABLE TO AN EMPLOYEE ON TERMINATION OF HIS EMPLOYMENT AFTER HE HAS RENDERED CONTINUOUS SERVICE FOR NOT LESS THAN FIVE YEARS - (A) ON HIS SUPERANNUATION, OR (B) ON HIS RETIREMENT, RESIGNATION, OR (C) ON HIS DEATH OR DISABLEMENT DUE TO ACCIDENT OR DISEASE.
AN EMPLOYER WILL BE LIABLE TO PAY GRATUITY TO THE LEGAL HEIRS/NOMINEES OF THE DECEASED EMPLOYEE EVEN IF THE EMPLOYEE HAD NOT COMPLETED FIVE YEARS SERVICE.'
From India, Hyderabad
Dear Sunderrajen,
The deceased employee's family would be entitled for gratuity calculated at the current pay (Basic+DA) from the day he joined up to the date of his attaining 58 years...???
I don't think we have to provide upto 58years if an employee expires before he attained the retirement age. We used to provide upto the service he rendered in an Organization.
This is my doubt only.., please confirm...
From India, Hyderabad
The deceased employee's family would be entitled for gratuity calculated at the current pay (Basic+DA) from the day he joined up to the date of his attaining 58 years...???
I don't think we have to provide upto 58years if an employee expires before he attained the retirement age. We used to provide upto the service he rendered in an Organization.
This is my doubt only.., please confirm...
From India, Hyderabad
To get EDLI, one day attendance will do. In such cases pro-rata basis is not be applicable. If salary is Rs.5000, EDLI will be 1,00,000 and not 1,30,000. (i.e 20x5000).
Besides, widow pension will be 1901 and child pension 475.
Abbas.P.S
From India, Bangalore
Besides, widow pension will be 1901 and child pension 475.
Abbas.P.S
From India, Bangalore
In case you service the gratuity payments through LIC group gratuity scheme, the the calculation will be: completed years of service+future service up to completion of 58 years X current basic+DA as on date of death/26, subject to a maximum of Rs.3.5 lakhs. The premium charged by LIC duly covers the future liability also and hence, the gratuity is paid up to the completion of 58 years.
In case the payment is directly made by the company, you may calculate gratuity up to the date of death. Section 2 of the Payment of Gratuity Act 1972 is silent on payment of gratuity for the remaining years of service and hence several employers do follow this procedure without taking the remaining service period.
It is up to you to decide what is best for your employees.
From India, Hyderabad
In case the payment is directly made by the company, you may calculate gratuity up to the date of death. Section 2 of the Payment of Gratuity Act 1972 is silent on payment of gratuity for the remaining years of service and hence several employers do follow this procedure without taking the remaining service period.
It is up to you to decide what is best for your employees.
From India, Hyderabad
Dear Jyoti,
The issue seems to have got mixed up with the various entitlements of the employee vis-a vis the compensation, if any, payable.
In the instant case, since the death of the employee took place at his residence and has no direct relationship with the nature of work he was performing while in your company, no compensation is payable by your company. However, all usual payments such as epf, gratuity, edlis, family pension, esic amount, as admissible shall be payable to him.
Regards
S.K.Johri
From India, Delhi
The issue seems to have got mixed up with the various entitlements of the employee vis-a vis the compensation, if any, payable.
In the instant case, since the death of the employee took place at his residence and has no direct relationship with the nature of work he was performing while in your company, no compensation is payable by your company. However, all usual payments such as epf, gratuity, edlis, family pension, esic amount, as admissible shall be payable to him.
Regards
S.K.Johri
From India, Delhi
Dear all,
According to my knowledge he is eligible for due salary for the days he worked
nominee is eligible to claim PF amount through Form 20
nominee is eligible to claim Pension fund if he completes 6months contribution through Form 10 D
nominee is eligible to claim EDLI (6*6500=39000)through Form 5IF
nominee is not eligible to claim gratuity as the deceased employee not yet completed one year continual service(if company
nominee is eligible to claim gratuity amount (if LIC linked group insurance is there)
nominee is eligible to claim funeral expenses if he covered ESI
Please comment.
Regards
Raju
From India, Secunderabad
According to my knowledge he is eligible for due salary for the days he worked
nominee is eligible to claim PF amount through Form 20
nominee is eligible to claim Pension fund if he completes 6months contribution through Form 10 D
nominee is eligible to claim EDLI (6*6500=39000)through Form 5IF
nominee is not eligible to claim gratuity as the deceased employee not yet completed one year continual service(if company
nominee is eligible to claim gratuity amount (if LIC linked group insurance is there)
nominee is eligible to claim funeral expenses if he covered ESI
Please comment.
Regards
Raju
From India, Secunderabad
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Employee's Compensation Act-2009.pdf
Compensation for deceased Employee.xls
THE EMPLOYEE COMPENSATION ACT.docx